In Spain, when we speak of Señal in the real estate context, we're referring to a deposit or down payment made when reserving a property for sale.

How important is the Señal?

• This is a financial commitment between buyer and seller.
• It reserves the property for the buyer, taking it off the market.
• It is the first contractual commitment between the two parties.

In Spain, it is customary for a purchase offer to be accompanied by a bank transfer corresponding to the Señal. If the offer is accepted, this amount is then deducted from the Arras total, thus formalizing the commitment between the two parties.

What makes Señal so special?

• The amount is not precisely defined, but is generally between 3% and 10% of the property price.
• The Señal can be paid in cash, by cheque or by bank transfer.
• It is paid when the reservation contract, known as the Contrato de arras, is signed.

What risks do the parties run in the event of withdrawal?

• In the event of retraction, the buyer risks losing the amount of the Señal.
• If it is the seller who withdraws, he/she must generally refund double the amount paid.

What are the steps involved in settling the Señal properly?

1. The price of the property and the terms of sale must have been clearly negotiated.
2. A reservation contract(Contrato de arras) must be drawn up.
3. The Señal payment is made.
4. A detailed receipt is given to the buyer by the seller.

Advice from the experts at Terreta Spain

• Be sure before you commit.
• Check the legal status of the property by obtaining the Nota Simple.
• Negotiate the amount of the Señal.
• Make sure the contract contains a clause on repayment conditions.
• Call in a lawyer to check the contract. Contact our experts for recommendations of qualified professionals.

FAQ: Señal in Spanish real estate

What is Señal?

La Señal is a deposit paid when reserving a property in Spain.

How much is the Señal?

The amount of the Señal is generally between 3% and 10% of the price of the property.

When is Señal paid?

It is paid on signature of the reservation contract, known as Contrato de arras.

Can a buyer lose the amount of the Señal paid?

Yes, if he withdraws, the buyer can lose the Señal if he does not respect the terms of the contract.

Can a seller be required to reimburse Señal?

Yes, if the seller withdraws, he must refund double the amount of the Señal.